BOOK CLUB

ALGARVE BOOK WORMS

Jake Cleaver is continuing his quest to discover the book lovers of the Algarve. It’s proving difficult. Are any of you out there? Don’t be shy. If you love books write to us at simplyalgarvemag@gmail.com and let us know which ones and why, and we’ll be sure to pass it on!

Here we are with the second edition of the book review club. I’m not going to lie, it hasn’t been easy. You book worms are quite elusive and hard to uncover. But hey, I’m hopeful. It’s Autumn now. It’s rained, the dust has settled and the ground is wet - some of you might very well start to come up to the surface. I’d like to thank everybody who has written in, it’s a great help and I truly appreciate it.

If you like the idea of having a place where you can see what your fellow Algarvians have been reading lately - and recommend that you do too. Then consider helping us keep this going by simply writing in and letting us know a book (old or new) that you like. That’s the only criteria - you have to like it!

In the meantime, now the long hot summer has finally come to a close. Here’s a few books your fellow Algarvians recommend that you curl up, with a hot cup of tea, and read while the rain comes down outside. (Which is exactly what’s happening at the time of writing - for the first time in months. How lovely.)

After all, books are quite incredible things. This is what the extraordinary astronomer and author Carl Sagan, who even though he was more inclined to marvel at the cosmos, also found time to marvel at what has to be, indeed, one of the most marvellous things us human beings have done, had to say about them:

“What an astonishing thing a book is. It’s a flat object made from a tree with flexible parts on which are imprinted lots of funny dark squiggles. But one glance at it and you’re inside the mind of another person, maybe somebody dead for thousands of years. Across the millennia, an author is speaking clearly and silently inside your head, directly to you. Writing is perhaps the greatest of human inventions, binding together people who never knew each other, citizens of distant epochs. Books break the shackles of time. A book is proof that humans are capable of working magic.”

And even though Carl died in 1996, he can still share his message with us. Amazing isn’t it? In that way he does indeed live on forever. True magic. And here’s your opportunity to transcend space and time too. I’m not sure how fantastically durable the magazine in your hand is. However, if you do decide to write in with a book review, your words will at the very least give you a few months of ‘immortality’ on peoples living room tables. If you get put in a dentist waiting room just think how long you could go!

Shantaram, by Gregory David Roberts

I could almost taste and smell and feel India as I read this incredible book. And, I could see the faces of the poor, their slums, their poverty. I’m rambling….right, back to the beginning. Shantaram is the story of a convicted Australian bank robber and heroin addict who flees to India after escaping from prison. That’s all I can tell you about the plot because there is so much to say but you need to read it to really experience the book which is so much more than just a story.

The adjectives swimming around my head shouting out words seem inadequate and my desire to visit these places has morphed into a desperate need. The descriptions of life in Bombay, the people encountered and the stories each person has are all staggering in their depth and colour. Perhaps it’s the juxtaposition with my own life to that of the protagonist? Perhaps it’s the gulf between our cultures that compels me to experience India myself after reading this biographical insight into how diverse our lives are.

Roberts is not altogether the type of chap one would automatically want

to be associated with and at no time does he expect clemency or sympathy of any kind. Prior to his arrival in India he was a mess and his future looked mapped out – prison for the foreseeable future and destroyed relationships. I think he has genuinely regained his dignity and deserves his second chance. Read the book and decide for yourself. Dawn Annandale

The Book of Negroes, by Lawrence Hill.

This is a compelling fictional story, based on the author’s knowledge and research of slavery. It follows the life of a young West African girl , who is abducted from her village at the age of 11 and was sold as a slave in the American South. After a harrowing life, she eventually escapes to become a free woman across the Canadian border in Nova Scotia. This is a riveting read that takes you through her highs and lows to escape the brutality of slavery. The tv mini series ‘Somebody knows my Name’ is based on this story, and if you loved ‘Roots’, you will love this book too. Marilyn Sheridan

The Giver of Stars, by Jojo Mayes

What a delightful read. I have enjoyed other Jojo Mayes novels but this was quite different. Set in rural Appalachia in the days when books were for a privileged few, it paints the picture of a young aristocratic girl from England transported through her marriage to a country a world away. It is beautifully descriptive and at the same time tackles so many issues that still exist today; from basic rights to education and literacy. Centered around a mobile library on mule and horseback, it is definitely worth reading on so many levels. Everyone will get something out of this book. Julie Coulson

Mythos, by Stephen Fry

Now that the 3rd instalment of Stephen Fry’s Greek Mythology series “Troy”, has just been released at the beginning of the Month. I thought now would be a good time to go back to where it all began. Just like Stephen does in “Mythos”, the first book of the trilogy, where he takes us right the way back to the beginning and brilliantly explains the creation of the universe according to the Ancient Greeks.

It’s so nice to learn about the truly epic adventures of the Greek Gods. In the past you might have thought that they would be nice to know about, but such Ancient stories would be quite dense and hard to get into. They probably are. However, if you add in all the wit and charm of Stephen Fry, what can I say, it’s a match made in heaven. Quite literally, as we get to hear all the stories that once went on high above us in Mount Olympus. But it gets even better. I don’t know how many of you listen to books? It’s one of the truly revolutionary developments of modern times. It’s a real game changer, as it opens up a whole world of time to read. You could be washing up, walking the dog.. resting your eyes while you try to fall asleep. But instead, and this is what I want to tell you about, you could be on a quest with Hercules, or soaring through the sky with Icarus (rather briefly, I admit), and generally learning about what the magnificent and dangerous - but also absolutely fascinating Greek Gods, got up to.

Of course the Audible app (where I suggest you go) has thousands of books to choose from. But, if you are just starting out I’d say that Stephen Fry really is the man to, shall we say, take you and your headphones out for a walk, and get your ears wagging. I’m telling you, it’s something really great. And now, back to the creation of everything according to Stephen and the Greeks:

“It is enough to say that the Greeks thought it was Chaos who, with a massive heave, or a great shrug, or hiccup, vomit or cough, began the long chain of creation that has ended with pelicans and penicillin and toadstools and toads, sea-lions, lions, human beings and daffodils and murder and art and love and confusion and death and madness and biscuits.” Jake Cleaver

Don’t forget to send us your own review to be featured in next months edition to simplyalgarvemag@gmail.com, if you would like to remain anonymous, please just let us know in your email.

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QUESTIONS & ANSWERS Each month, Ricardo Chaves of All Finance Matters gives an insight into the legalities governing tax and general financial matters

Q I am a UK citizen resident in Portugal, I recently decided to sell one of my properties here, what costs can I offset against the capital gain tax? My builder did not issue any invoices at the time of construction in 2001, but I have the copy of the bank transfers. What other costs are deductible: lawyers fees, energy certificate, etc?

Even though you have all the proof of transfers, you need invoices and the tax authorities will not allow you to deduct those costs, without them. You also will not be able to deduct the lawyer’s fees on the purchase or on the sale, this is because the tax department does not consider this expense essential, for the conclusion of the transaction. In this case, the solution would be to use the tax value of the property, at the time the works were finished. Once the build was completed, there was a revaluation from the tax office to the property, although this is normally lower than the commercial value, we can use it as the ‘purchase price’ and lower your liability for not having the invoices from the builder. Below you can find other common deductions to the capital gain tax: - Invoices for maintenance or construction works, please note that for these type of expenses it’s advisable that the invoice states the correct address of the property where the works were done. Costs considered are normally the ones of constructing, maintaining or improving your home. - Energy Certificate, please note that if you previously used this cost in another IRS declaration, for instance if you rent the property previously, you cannot use it again. - Real Estate Commission, please make sure that you used a licensed estate agent and that they are mentioned on the deed. - IMT - Property Transfer Tax and Stamp duty paid on purchase - Notary costs on the deed of purchase Please note that furniture is not deductible and there are other common expenses not accepted, as the tax authorities consider that these may be removed from the property prior to the sale: air conditioning and kitchen appliances are good examples. So, if you are selling your property furnished or with these items included in the inventory, you may consider selling these separately.

I own a holiday hone in Manta Rota, but I am considering moving there next year, to take advantage of the Non-Habitual Residency. If I do that and then sell it to buy a bigger property, will I pay tax? What is the minimum time I need to live in the property prior to the sale?

The IRS Code does not stipulate a clear rule regarding this situation, so there is no minimum time frame. However, we advise you to live in the property at least 183 days, prior to the sale. This way the tax authorities could not challenge your residency status. Another possibility would be to become resident at the end of the current tax year and sell it at the beginning of the following tax year, again this would prevent any issues in case of a tax audit as you were already considered resident in the tax year previous to the sale. Please note that in order to comply with the tax authorities requirement of primary residency, your address registered at the tax office, needs to be the same of the property being sold.

How does the reinvestment work? Can I reinvest in another country, the UK for instance?

If you are resident and the property you are selling is your primary residence, you can reinvest the proceedings of the sale on another purchase within the EU. This needs to be done on a purchase made between 24 months prior and 36 months after the sale. If the reinvestment in the new property is lower than the total sale, than the tax will be calculated pro-rata. Please note that if you declare on your tax return that you wish to reinvest the proceeding of the sale and then fail to do so, or reinvest a lower amount, the tax will be reassessed and you will pay interest. Even if they do not plan to sell your home for now, it is important that you keep all supporting charges and make sure this invoices include your name and fiscal number and very important: the correct address of the property. The repayment of mortgage loans, incurred to purchase the property, will also be taken into consideration, when calculating the tax. As the UK may no longer be in the EU in 2021, you need to make sure that the reinvestment happens before Brexit. If possible, you can consider reinvesting now, even if the sale only happens later.

I live in Loulé since 2012, but I am moving to the UK towards the end of the year. I have my property in the market, but if the sale does not happen soon, I may leave to the UK in the meantime. Can you let me know what would be the consequences in terms of capital gain tax. What are the differences between Residents vs Non-residents individual ownership?

If you sell the property as a non-resident, for tax purposes the tax applicable to your capital gain, will be 28%. If, however you are resident, the tax will be levied only on 50% of the gain and you will be taxed according to the tax bracket applicable to your overall income. This means that you will always pay less if you are resident. However, if you sell while being non-resident in Portugal but resident in the EU (before Brexit), it is possible to opt for the same rules of the residents and be taxed only on 50% of the gain. For this to happen, is necessary that you declare to Portugal your worldwide income, so that the tax authorities can aggregate your income to the capital gain and determine which tax bracket you are in. Please